Retailer reliability obligation - Interim contracts and firmness guideline

Sector: 
Segment: 
Category: 
Retailer Reliability Obligation
Status: 
Date initiated: 
23 May 2019
Effective date: 
30 August 2019
Contact: 
General enquiries - Retailer Reliability Obligation RRO@aer.gov.au

Overview

The Australian Energy Regulator (AER) is supporting improving reliability in the NEM by implementing the Retailer Reliability Obligation (RRO) alongside the Energy Security Board (ESB).

The ESB was tasked to develop the National Electricity Rules (the Rules) necessary to implement the Obligation. The final Rules came in to effect on 1 July 2019.

As set out in the Rules, the AER is responsible for developing a number of Guidelines on certain aspects of the RRO.

Interim Contracts and Firmness Guideline

As set out in transitional Rule 11.116.6 the AER must create interim Contracts and Firmness Guidelines. The guideline sets out the AER’s approach to qualifying contracts, contract firmness methodology, the treatment of non-qualifying contracts, the approval process for non-standard qualifying contracts, the establishment and maintenance of an Auditors Panel, the submission of net contract position reports, information requirements of liable entities, as well as its approach towards monitoring compliance with the obligation.

On 30 August 2019 we published the Interim Contracts and Firmness Guideline, Auditor panel handbook and final determination document.

Auditor panel expression of interest

The AER is required to establish and maintain a panel of auditors. The AER is now calling for expressions of interest from suitably qualified people to join the panel. Applications for the initial Auditors Panel will be open from 1 September 2019 to 31 October 2019.

Information on how to apply is contained in the Auditors panel handbook. All applications should be emailed to RRO@aer.gov.au. For any queries about the application process please email RRO@aer.gov.au.